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Old 05-21-2008, 07:28 PM   #21 (permalink)
Dan.Linehan
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Join Date: Oct 2006
Location: San Rafael, CA
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One more article from yesterday on this.


Fed pause promises financial disaster


Quote:
In the process, the Fed has pushed the dollar further down and accelerated inflation in energy and food prices, causing oil prices to race from US$70 per barrel to $126 per barrel, and food prices to levels that have resulted in malnutrition and riots.

Given that money policy works with a lengthy and variable lag, accelerating energy and food prices are the delayed effect of significant interest cuts and money expansion since August 2007. The indication is that inflationary expectations have become entrenched and strongly footed in world markets.

Hang on to your hats people. I hate to say it, but the collapse is coming... soon.
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